SAS Misses Expectations as Sales Rise
The Scandinavian Airlines System has announced a 19 percent rise in second quarter net profits, largely on the back of the sale of its hotel chain.
For the April to June period, the company reported a net profit of 87 million US dollars, compared to 72 million in the same period last year. The results failed to meet market expectations however, as the company also reported rising costs.
Despite fierce competition from low price airlines such as Sterling, Norwegian and Ryanair, and strikes by SAS staff in Sweden and Denmark, which are believed to have set back the company by nearly 45 million US Dollars, the airline’s share price has risen 40 percent this year.
SAS has already announced plans to sell off its Spanair and Air Greenland operations as well as its 20 percent stake in the British carrier bmi, and instead plans to update its aircraft fleet.